Just to update and kinda answer my own original question...

after having returned from Italy, I can safely say its far better to use a debt card to get euro rather than exchange usd cash.

It's not that some of the rates from the vendors are BAD, some are fairly good, but they hit you with all these insane fee's that really wind up making cash a lousy deal. I think you loose like 10% or so just in fee's.

So yeah, if I was going again, I would bring almost no USD and just rely on debt card.

Also 1 interesting note is do check with the hotel you are staying at for their rate if you want to exchange money! I just assumed that any hotel would give a terrible rate, and most did... But I had the pleasure of staying a couple nights at the Westin Rome thanks to the recent reduction in points to 12K (which is a STEAL!) and they had posted a fantastic rate that day, damn near what was up on yahoo finance that day and only, I think it was, a 3% fee, maybe it was 5%, I forget now, but I got WAY more euro than I would have at any of the exchange places at the airport or the city! It was a difference of like $10 euro per $100 USD exchanged.

Also, on a side note, always have a decent amount of Euro on hand.
Many places don't accept credit card at all. I assumed things like tickets for the forum would but they said cash only at the ticket booth. Also 1 restaurant would not take the USA card saying they could not process it cause it had no chip.

Then on gas, no problems for me at all, but I mainly traveled on the autostrada and always made sure I had a full tank of I was going to travel to out of the way places. All of the gas and food and things at the autogrills along the strada take USA cards no problem. Pump the gas yourself too to save money. My car used diesel and rates were about 1.23 a liter if you use self service or about 1.30 if you use full service. Try top get a diesel car too as unleaded was much more over there. The total opposite of america.